OPTIONS — MULTI-LEG STRATEGY
Vertical Spread
Analyse Bull Call Spreads and Bear Put Spreads as one two-leg position, with user-entered commissions, payoff, break-even, maximum risk and early close.
Inputs
Field guide ↗This first version handles debit verticals: Bull Call Spread and Bear Put Spread. The long-leg premium must be greater than the premium received from the short leg.
Both legs must use the same underlying, expiration, multiplier and contract count. Trade Math does not verify a live option chain.
The short leg may face early assignment when the option is American style. The chart describes expiration payoff and does not remove pre-expiration operational risk.
Tax is a simplified estimate applied to positive displayed results and does not model offsets or leg-specific tax treatment.
Before expiration, both options also depend on remaining time, implied volatility, bid-ask spreads and liquidity. Early-close results use premiums entered by the user.
Vertical Spread summary
Vertical Spread profit and loss at expiration
The curve shows the combined payoff of both legs: the short leg reduces upfront cost but caps maximum profit.
Vertical Spread
Expiration scenarios
| Underlying | Spread value | P/L before tax | P/L after tax |
|---|
Early closing of the spread
Enter both current leg premiums to simulate an early close.